Are you positive-minded but not really open to new experiences? Your bank account loves you.
Being an extrovert has its advantages. And so does being an introvert. As someone who isn’t a people-person, you don’t always need others around to have a good time, and the time you spend alone could allow you to grow a wealth of knowledge in an area that proves to be lucrative, or at least useful.
But if you’re more likely to actually spend all the money you’ve gained, you might need to have some financial safe guards in place.
A study done at Texas Tech University found the speed at which you spend your retirement savings has a lot to do with your personality. If you’re an introvert you’re likely to spend it faster than an extrovert.
Related: How to Keep Your Bladder at Its Best
“We found that those with greater conscientiousness, extroversion, positive emotions and feelings of control over their finances withdrew from their retirement portfolios at a lower rate than those with greater openness, agreeableness, neuroticism and negative emotions,” said Sarah Asebedo, PhD, lead author of the study.
If you are a bookworm, should you have a lower withdrawal rate in place, so you don’t run out of money too early? Maybe, says Asebedo, but maybe not. It all depends on the balance that exists between your personality, the amount of money you have saved, the number of years you may live in retirement, and what kind of lifestyle you expect to have. It’s all hard to predict.
Asebedo says she hopes her findings encourage financial professionals to take their client’s personality into consideration when developing retirement strategies, and not simply the client’s financial situation.
Live for the moment or save for tomorrow? It’s up to you.